Shareholder returns and stock trends
So far in this series, we’ve discussed Hewlett Packard Enterprise’s (HPE) recent acquisition and industry analysts’ outlook on the company’s stock. Now let’s have a look at the technical indicators investors and traders look at to make market entry and exit decisions.
As of May 28, HPE stock has risen ~6% in the trailing-12-month period. However, in the trailing-one-month period, it has fallen ~9%.
In comparison, VMware (VMW) stock has been on an upward trajectory and has generated a return of ~41% in the last year. Cisco Systems (CSCO) has followed the same trend, generating a positive return of ~36.5% in the same period.
HPE’s moving averages and MACD
On May 28, HPE was trading at $15.52. The stock was trading 9% below its 20-day, 50-day, and 100-day moving averages of $17.
HPE’s 14-day MACD (moving average convergence divergence) of -0.06 shows a downward trading trend, as the figure is negative. MACD, a measure that was developed by Gerald Appel in the 1970s, is an important technical indicator that refers to the difference between a stock’s short-term and long-term moving averages. It’s helpful to use when gauging trends in a stock’s movements.